Question: Question 2 Assume the following data for a stock: Beta = 2.44; Risk-free rate = 3.80%; Market rate of return = 12.25%; and Expected rate

Question 2 Assume the following data for a stock: Beta = 2.44; Risk-free rate = 3.80%; Market rate of return = 12.25%; and Expected rate of return on the stock = 15%. Supposing that CAPM (Capital Asset Pricing Model) holds, then the stock is Question 2 options: fairly priced. underpriced. overpriced.

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